The World Bank and The International Monetary Fund | Global Exchange Resources The World Bank and The International Monetary Fund Through loans, often to governments whose constituents suffer the most under the global economy, and "structural adjustment" policies, the World Bank (WB) International Monetary Fund (IMF) has kept most nations of the global south in poverty. Conditions on accepting loans ensure open market access for corporations while cutting social spending on programs such as education, health care and production credits for poor farmers. Created after World War II to help avoid Great Depression-like economic disasters, the World Bank and the IMF are the world's largest public lenders, with the Bank managing a total portfolio of $200 billion and the Fund supplying member governments with money to overcome short-term credit crunches. But when the IMF and the WB lend money to debtor countries, the money comes with strings attached. These strings come in the form of policy prescriptions called "structural adjustment policies." These policies—or SAPs, as they are sometimes called—require debtor governments to open their economies to penetration by foreign corporations, allowing access to the country's workers and environment at bargain basement prices. Structural adjustment policies mean across-the-board privatization of public utilities and publicly owned industries.

They mean the slashing of government budgets, leading to cutbacks in spending on health care and education. They mean focusing resources on growing export crops for industrial countries rather than supporting family farms and growing food for local communities. And, as their imposition in country after country in Latin America, Africa, and Asia has shown, they lead to deeper inequality and environmental destruction. The International Monetary Fund (IMF) About Watch and Favorite Watch Watching this resources will notify you when proposed changes or new versions are created so you can keep track of improvements that have been made. Favorite Favoriting this resource allows you to save it in the “My Resources” tab of your account. There, you can easily access this resource later when you’re ready to customize it or assign it to your students. The International Monetary Fund (IMF) The IMF seeks to promote international economic cooperation, international trade, employment, and exchange rate stability. Learning Objective Explain how the International Monetary Fund (IMF) aids its 188 member countries Key Points The International Monetary Fund (IMF) is an international organization that was created on July 22, 1944 at the Bretton Woods Conference.

The IMF's stated goal is to stabilize exchange rates and assist the reconstruction of the world's international payment system after World War II. The IMF is run by country contributions. Money is pooled through a quota system from which countries with payment imbalances can borrow funds on a temporary basis. It works with developing nations to help them achieve macroeconomic stability and reduce poverty . The rationale for this is that private international capital markets function imperfectly and many countries have limited access to financial markets. Such market imperfections, together with balance of payments financing, provide the justification for official financing, without which many countries could only correct large external payment imbalances through measures with adverse effects on both national and international economic prosperity. The IMF can provide other sources of financing to countries in need that would not be available in the absence of an economic stabilization program supported by the Fund. Member countries of the IMF have access to information on the economic policies of all member countries, the opportunity to influence other members' economic policies, technical assistance in banking, fiscal affairs, and exchange matters, financial support in times of payment difficulties, and increased opportunities for trade and investment . IMF conditionality is a set of policies that the IMF requires in exchange for financial resources .

The IMF does not require collateral from countries for loans but rather requires the government seeking assistance to correct its macroeconomic imbalances in the form of policy reform. If the conditions are not met, the funds are withheld. Conditionality is perhaps the most controversial aspect of IMF policies. These loan conditions ensure that the borrowing country will be able to repay the Fund and that the country won't attempt to solve their balance of payment problems in a way that would negatively impact the international economy . The incentive problem of moral hazard , which is the actions of economic agents maximizing their own utility to the detriment of others when they do not bear the full consequences of their actions, is mitigated through conditions rather than providing collateral; countries in need of IMF loans do not generally possess internationally valuable collateral anyway. Conditionality also reassures the IMF that the funds lent to them will be used for the purposes defined by the Articles of Agreement and provides safeguards that country will be able to rectify its macroeconomic and structural imbalances. In the judgment of the Fund, the adoption by the member of certain corrective measures or policies will allow it to repay the Fund, thereby ensuring that the same resources will be available to support other members.

Voting power in the IMF is, like the money pool, based on a quota system. Each member has a number of "basic votes" (each member's number of basic votes equals 5.502% of the total votes), plus one additional vote for each Special Drawing Right (SDR) of 100,000 of a member country's quota. The Special Drawing Right is the unit of account of the IMF and represents a claim to currency . It is based on a basket of key international currencies. The basic votes generate a slight bias in favor of small countries, but the additional votes determined by SDR outweigh this bias. The IMF is mandated to oversee the international monetary and financial system and monitor the economic and financial policies of its 188 member countries. This activity is known as surveillance and facilitates international cooperation. Since the demise of the Bretton Woods system of fixed exchange rates in the early 1970s, surveillance has evolved largely by way of changes in procedures rather than through the adoption of new obligations. The responsibilities of the Fund changed from those of guardian to those of overseer of members' policies. Some critics assume that Fund lending imposes a burden on creditor countries.

However, countries receive market-related interest rates on most of their quota subscription, plus any of their own-currency subscriptions that are loaned out by the Fund, plus all of the reserve assets that they provide the Fund. Also, as of 2005 borrowing countries have had a very good track record of repaying credit extended under the Fund's regular lending facilities with the full interest over the duration of the borrowing. Terms Register for FREE to remove ads and unlock more features! Learn more Full Text The International Monetary Fund (IMF) is an international organization that was created on July 22, 1944 at the Bretton Woods Conference and came into existence on December 27, 1945 when 29 countries signed the IMF Articles of Agreement. It originally had 45 members. The IMF's stated goal was to stabilize exchange rates and assist the reconstruction of the world's international payment system post-World War II. Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds on a temporary basis. Through this activity and others, such as surveillance of its members' economies and policies, the IMF works to improve the economies of its member countries.

The IMF describes itself as "an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty. " The organization's stated objectives are to promote international economic cooperation, international trade, employment, and exchange rate stability, including by making financial resources available to member countries to meet balance of payments needs. Member countries of the IMF have access to information on the economic policies of all member countries, the opportunity to influence other members' economic policies, technical assistance in banking, fiscal affairs, and exchange matters, financial support in times of payment difficulties, and increased opportunities for trade and investment. Voting power in the IMF is based on a quota system. Each member has a number of "basic votes" (each member's number of basic votes equals 5.502% of the total votes), plus one additional vote for each Special Drawing Right (SDR) of 100,000 of a member country's quota. The Special Drawing Right is the unit of account of the IMF and represents a claim to currency. It is based on a basket of key international currencies.

The basic votes generate a slight bias in favor of small countries, but the additional votes determined by SDR outweigh this bias. The IMF works to foster global growth and economic stability. It provides policy advice and financing to members in economic difficulties and also works with developing nations to help them achieve macroeconomic stability and reduce poverty. The rationale for this is that private international capital markets function imperfectly, and many countries have limited access to financial markets. Such market imperfections, together with balance of payments financing, provide the justification for official financing, without which many countries could only correct large external payment imbalances through measures with adverse effects on both national and international economic prosperity. The IMF can provide other sources of financing to countries in need that would not be available in the absence of an economic stabilization program supported by the fund. The IMF is mandated to oversee the international monetary and financial system and monitor the economic and financial policies of its 188 member countries. This activity is known as "surveillance" and facilitates international cooperation.

Since the demise of the Bretton Woods system of fixed exchange rates in the early 1970s, surveillance has evolved largely by way of changes in procedures rather than through the adoption of new obligations.The responsibilities of the fund changed from those of guardian to those of overseer of members' policies. The fund typically analyzes the appropriateness of each member country's economic and financial policies for achieving orderly economic growth, and assesses the consequences of these policies for other countries and for the global economy. IMF conditionality is a set of policies or "conditions" that the IMF requires in exchange for financial resources. The IMF does not require collateral from countries for loans but rather requires the government seeking assistance to correct its macroeconomic imbalances in the form of policy reform. If the conditions are not met, the funds are withheld. Conditionality is the most controversial aspect of IMF policies. These loan conditions ensure that the borrowing country will be able to repay the fund and that the country won't attempt to solve their balance of payment problems in a way that would negatively impact the international economy.

The incentive problem of moral hazard, which is the actions of economic agents maximizing their own utility to the detriment of others when they do not bear the full consequences of their actions, is mitigated through conditions rather than providing collateral; countries in need of IMF loans do not generally possess internationally valuable collateral anyway. Conditionality also reassures the IMF that the funds lent to them will be used for the purposes defined by the Articles of Agreement and provides safeguards that country will be able to rectify its macroeconomic and structural imbalances. In the judgment of the fund, the adoption by the member of certain corrective measures or policies will allow it to repay the fund, thereby ensuring that the same resources will be available to support other members. IMF News IMF CHIEF LAGARDE TELLS PARIS COURT: "THESE FIVE DAYS OF TRIAL PUT AN END TO A FIVE-YEAR ORDEAL" Friday, 16 Dec 2016 | 4:35 AM ET IMF CHIEF LAGARDE TELLS PARIS COURT: "THESE FIVE DAYS OF TRIAL PUT AN END TO A FIVE-YEAR ORDEAL".

Greece and IMF squabble over austerity and forecasting Tuesday, 13 Dec 2016 | 9:01 AM ET Officials from the IMF are in Athens along with representatives from Greece's creditors in Europe over what the Greek government has to do next to get more bailout loans, participation in a European Central Bank bond-buying program and longer-term meaningful debt relief. His barb came in response to an article by senior IMF officials Monday, who denied that... IMF chief Lagarde proclaims innocence in French payout case Monday, 12 Dec 2016 | 3:15 AM ET PARIS— International Monetary Fund chief Christine Lagarde proclaimed her innocence in a Paris court Monday at the start of her trial on accusations of negligence for allowing a huge payout to a well-connected businessman when she served in French government. Lagarde told the court she does "not feel guilty of any negligence whatsoever" and that she "acted in...

IMF chief Lagarde faces negligence trial in France Sunday, 11 Dec 2016 | 12:46 PM ET PARIS— Christine Lagarde is taking time off her day job solving the world's financial crises to face trial Monday, accused of negligence after the French state handed $425 million to a tycoon close to the president in 2008.. The Washington- based institution's credibility was already shaken when her predecessor, Dominique Strauss-Kahn, also a French citizen,... IMF chief Lagarde faces negligence trial in France Sunday, 11 Dec 2016 | 12:24 PM ET PARIS— Christine Lagarde is taking time off her day job solving the world's financial crises to face trial Monday, accused of negligence after the French state handed $425 million to a tycoon close to the president in 2008.. The Washington- based institution's credibility was already shaken when her predecessor, Dominique Strauss-Kahn, also a French citizen,...

IMF says retains confidence in Lagarde over French trial Thursday, 8 Dec 2016 | 10:33 AM ET WASHINGTON, Dec 8- The International Monetary Fund said on Thursday that its executive board continues to be briefed on the French court case involving Managing Director Christine Lagarde and retains confidence in her ability to lead the international organization. "The executive board has been briefed on recent developments related to this matter and... IMF staff sees Dutch economic growth around 2 pct in 2016, 2017 Thursday, 8 Dec 2016 | 6:05 AM ET AMSTERDAM, Dec 8- The Dutch economy will grow at around 2 percent this year and next year, International Monetary Fund experts said on Thursday. IMF Netherlands Mission Chief Thomas Dorsey said at a news conference after a visit that external risks to the trade-dependent Dutch economy were balanced by strong domestic demand that may not be fully accounted for... Donald Trump is wrong when he says China is holding down its currency Wednesday, 7 Dec 2016 | 2:23 PM ET While Donald Trump's claims may have been true about decade ago, they are contrary to China’s current reality.

UPDATE 1-Major Ukraine privatisation flops as plant attracts no bids Wednesday, 7 Dec 2016 | 8:12 AM ET KIEV, Dec 7- A second attempt to auction Ukraine's state-owned Odessa Portside Plant failed to attract any bids, the State Property Fund said on Wednesday- a major setback for a Western-backed push for privatisation and reform. Ukraine is already struggling to convince its international backers, which include the International Monetary Fund and Western... UPDATE 1-Major Ukraine privatization flops as plant attracts no bids Wednesday, 7 Dec 2016 | 8:12 AM ET KIEV, Dec 7- A second attempt to auction Ukraine's state-owned Odessa Portside Plant failed to attract any bids, the State Property Fund said on Wednesday- a major setback for a Western-backed push for privatization and reform. Ukraine is already struggling to convince its international backers, which include the International Monetary Fund and Western...

The Persian Gulf's debt binge creates a 'vicious circle' on the Arab Peninsula Tuesday, 6 Dec 2016 | 2:47 PM ET Persian Gulf states are plugging deficits by turning to international debt markets, and the risks vary across the region. UPDATE 1-Greece hails debt relief, urges Germany and IMF to drop austerity demands Tuesday, 6 Dec 2016 | 11:07 AM ET ATHENS, Dec 6- Greece welcomed the euro zone's offer of short-term debt relief on Tuesday but urged Germany and the International Monetary Fund to abandon their demands for harsher austerity once its bailout programme expires in 2018.. It wants to wrap up the latest review to qualify for inclusion in the European Central Bank's quantitative easing programme... Greece could profit from Europe's political turmoil but needs all the friends it can get: Economist Tuesday, 6 Dec 2016 | 7:47 AM ET Political uncertainty across Europe could push the European Central Bank (ECB) to start buying Greek debt, according to an economist.

Euro zone seeks compromise on Greek debt ahead of IMF deadline Sunday, 4 Dec 2016 | 6:00 PM ET BRUSSELS, Dec 5- Euro zone finance ministers hope to reach a compromise on Greek reforms on Monday in a final bid to get International Monetary Fund support for its bailout programme by the end of the year. Greece is required by its euro zone creditors to pass wide-ranging reforms and sell state assets under an 86 billion euros bailout programme, but negotiators... UPDATE 4-Mexicos post-Trump blues deepen as cenbank chief to move on Thursday, 1 Dec 2016 | 4:33 PM ET MEXICO CITY, Dec 1- Mexican Central Bank Governor Agustin Carstens will stand down in July, a move that adds doubts about the direction of Latin America's No. 2 economy following the election of Donald Trump as U.S. president. He ran unsuccessfully in 2011 to head the International Monetary Fund, losing to France's Christine Lagarde. Carstens also said that the...

Voters get another chance to throw banks and markets for a loop on Sunday Thursday, 1 Dec 2016 | 10:54 AM ET Italy is getting ready for a referendum that could overhaul the country’s constitution, and the stakes are high. UPDATE 1-IMF sees Georgia GDP growing 2.7 pct in 2016, 4 pct in 2017 Thursday, 24 Nov 2016 | 7:31 AM ET TBILISI, Nov 24- The International Monetary Fund forecasts Georgia's gross domestic product will grow 2.7 percent in 2016 and by 4 percent in 2017, the IMF said on Thursday. The IMF had earlier predicted 3.4 percent growth in Georgia in 2016 and 5.2 percent in 2017, although its representative told Reuters earlier this month that its forecasts could be...

IMF forecasts Georgia's GDP will grow 2.7 pct in 2016, 4 pct in 2017 Thursday, 24 Nov 2016 | 6:22 AM ET TBILISI, Nov 24- The International Monetary Fund forecasts Georgia's gross domestic product will grow 2.7 percent in 2016 and by 4 percent in 2017, the fund said on Thursday. "The Georgian economy has shown resilience and continues to recover from the external shock, although at a slower pace than initially envisaged," the IMF said in a statement after the Fund's... PRECIOUS-Gold holds losses as US Fed rate hike views strengthen Wednesday, 23 Nov 2016 | 7:59 PM ET *Spot gold was down 0.2 percent to $1,185.68 an ounce by 0040 GMT. In the previous session, the metal fell 2 percent to touch a 9-1/ 2- month low of $1,181.45. *Russia and Kazakhstan continued to boost their gold reserves in October, data from the International Monetary Fund showed on Wednesday.

The next vote that could freak out Europe is coming up next week Wednesday, 23 Nov 2016 | 11:07 AM ET The Brexit vote stunned markets in June, and Donald Trump shocked investors in November. The Italians may be next. International Monetary Fund - IMF Definition | Investopedia Loading the player... What is the 'International Monetary Fund - IMF' The International Monetary Fund (IMF) is an international organization created for the purpose of standardizing global financial relations and exchange rates . The IMF generally monitors the global economy, and its core goal is to economically strengthen its member countries. Specifically, the IMF was created with the intention of: 1. Promoting global monetary and exchange stability. 2. Facilitating the expansion and balanced growth of international trade. 3. Assisting in the establishment of a multilateral system of payments for current transactions. BREAKING DOWN 'International Monetary Fund - IMF' Fixed exchange rates , also known as the Bretton Woods system (named after the original UN conference at which the IMF was conceived), refer to the value of a currency being tied to the value of another currency, or to gold.

The system of fixed exchange rates was established by the IMF as a way to bolster the global economy after the Great Depression and World War II. This system was abolished in 1971, and ever since, the IMF has promoted the system of floating exchange rates , which means that the value of a currency can change in relation to the value of another. This is the familiar system today. For example, when the U.S. economy suffers, the dollar's value goes down in relation to that of, say, the euro of the European Union , and the opposite is also true. The exchange rates established by the IMF allow countries to better manage economic growth and trade relations. These exchange rates are set in order to prevent economic collapse , which can occur with runaway exchange rates, which occurs when the rates continue to rise. The IMF vs. the World Bank The IMF works hand-in-hand with the World Bank , and although they are two separate entities, their interests are aligned, and they were created together. While the IMF provides only shorter-term loans that are funded by member quotas , the World Bank focuses on long-term economic solutions and the reduction of poverty and is funded by both member contributions and bonds .

The IMF is more focused on economic policy solutions, while the World Bank offers assistance in such programs as building necessary public facilities and preventing disease. How a Country Can Join the IMF Countries must apply to be a part of the IMF, although any country can apply. Over time, the stipulations of being a member have changed, with membership requirements being more relaxed when the Fund was in its early stages. Countries are required to make membership payments, or quotas , which are assigned to individual countries based on their economic size and stipulate how much they contribute. These quotas are larger for more powerful economies, and they form a pool from which countries in need can take loans. Member countries are also required to adhere to the Code of Conduct, and stricter regulations may be imposed on those countries who apply in hopes of financial aid. Members not only have access to the broad range of services provided by the IMF, but also to the economic records of other member countries. History of the IMF The IMF has completely reshaped the global economy and redefined the ways in which countries trade with and take loans from other countries. The IMF was first conceived at a UN conference in 1944, among the 44 attending countries, before it was officially created in 1945.

These countries wanted to globally stabilize exchange rates and financial communication between countries, especially following the disastrous Great Depression and World War II. Goals included international cooperation and trade, the reduction of poverty and financial crises , and economic growth. Although the Fund has evolved over the years to become what it is today and adapt to changing times, it still operates around the same guiding principles. The IMF played a large role in the economic restructurization of the post-World War II world. After the war, some countries were in economic distress, and others were reluctant to trade with certain countries after the fighting. The Fund helped smooth over the economic post-war transition period and restabilize the global economy so it could move toward prosperity, using systems such as fixed exchange rates. The IMF Today Currently, there are 188 member countries in the IMF, which is based out of Washington, D.C. Each country or region is represented by a member on the Fund's Executive Board and numerous staff members. The ratio of board members from each country is based on the country's global financial position, so that the most powerful countries in the global economy have the heaviest representation.

The United States has the highest voting power, followed by Asian countries such as Japan and China and Western European countries such as Britain, Germany, France, and Italy. While the IMF sets standards for the global economy and monitors the financial communications between countries, it also helps those countries in need by lending them the money necessary to turn their economy around and rebuild their financial structure. Countries contribute to a pool from which countries in need can borrow as a short-term loan. The IMF also assists countries in developing sustainable financial policies, provides economic advice, helps countries maximize their financial effectiveness, and works to help developing countries stabilize and sustain themselves in the global economy. For an example of the advice the IMF provides to its member countries, read The New York Times article " I.M.F. Cautions U.S. on Stocks, Insurance, and Mutual Funds ." This article discusses the Fund's observation that U.S. stocks are priced too high and its prediction of how that will affect the economy in the near future, making recommendations on how to fix what's wrong before it becomes a problem.

For an example of how the IMF works to stabilize countries with spiraling economies, read The Wall Street Journal article " Greece, Creditors Reach Agreement on Bailout Terms ," which goes into detail on the 2015 economic crisis in Greece. The article shows the IMF's role in the economic decisions surrounding Greek debt, such as helping to decide how to handle the debt and making contributions to offer debt relief. It also mentions ways in which the IMF contributed to past debt relief, and touches on the IMF's reasoning behind decisions to offer financial help or not. The IMF plays three major roles in the global monetary system. The Fund surveys and monitors economic and financial developments, lends funds to countries with balance-of-payment difficulties, and provides technical assistance and training for countries requesting it.

Trading Center International Monetary Fund (IMF) | Business | The Guardian International Monetary Fund (IMF) From Sports Direct’s Mike Ashley’s statement to MPs to Theresa May’s pledge to change the way big business is governed, here are the some of the year’s best Published: 28 Dec 2016 Scepticism about a Brexit apocalypse looks increasingly justified Larry Elliott The IMF and the OECD’s predictions of economic gloom went awry, and continued fallbacks may see them lose credibility Published: 28 Nov 2016 Seven years into its worst post-war slump, eurozone’s weakest link is locked into debts of €330bn amid talk of fourth bailout Published: 1:01 PM EU finance ministers to release €2.8bn after Athens government carried out required reforms relating to privatising state assets, tax and pensions Published: 2:33 PM The World Bank and the IMF won't admit their policies are the problem Larry Elliott Those who run the global economy realise it could blow up at any time, but are carrying on regardless Published: 7:22 AM Chancellor tells financial sector, worried about foreign investment, that lower level jobs and migrant labour are the problem Published: 3:27

 PM IMF report: in the new normal of the post-GFC world, sideways is the new up Greg Jericho Australia’s growth continues to do well compared with other nations, but below what was once considered average Published: 7:51 PM IMF: Definition, Chief, Functions, Members, Role By Kimberly Amadeo Updated September 08, 2016 Definition: The IMF (International Monetary Fund) is an organization of 189 member countries.

It stabilizes the global economy in three ways. First, it monitors global conditions and identifies risks. Second, it advises its members on how to improve their economies. Third, it provides technical assistance and short-term loans to prevent financial crises. The IMF's goal is to prevent these disasters by guiding its members. These countries are willing to give up some of their sovereign authority to achieve that aim. (Source: " How the IMF Promotes Financial Stability ," March 10, 2016.) IMF Chief The IMF chief has been Managing Director Christine Lagarde since July 5, 2011. She is Chairman of the 24-member Executive Board. It appointed her to a second renewable five-year term in February 2016 It is effective July 5, 2016. The Managing Director is the chief of the IMF’s 2,700 employees from 147 countries. She supervises four Deputy Managing Directors. (Source: " IMF Reappoints Lagarde ," February 19, 2016.) The IMF Governing Board sets direction and policies. Its members are the finance ministers or central bank leaders of the member countries. They meet each year in conjunction with the World Bank .

The International Monetary and Financial Committee (IMFC) meets twice a year. It reviews the international monetary system and makes recommendations. (Source: " IMF Governance Structure .") Functions Survey Global Conditions. The IMF has the rare ability to look into and review the economies of all its member countries. As a result, it has its finger on the pulse of the global economy better than any other organization. It produces a wealth of analytical reports thanks to that role. It provides the World Economic Outlook , the Global Financial Stability Report , and the Fiscal Monitor each year. It also delves into regional and country-specific assessments. It uses this information to determine which countries need to improve their policies. The IMF can identify which ones threaten global stability. The member countries have agreed to listen to the IMF's recommendations. They want to improve their economies and remove these threats. Advise Member Countries. Since the Mexican peso crisis of 1994–95 and the Asian crisis of 1997–98, the IMF has taken a more active role to help countries prevent financial crises. It develops standards that its members should follow. For example, members agree to provide adequate foreign exchange reserves in good times. That helps them increase spending to boost their economies during recessions .

It reports on members countries' observance of these standards. It also issues member country reports that investors use to make well-informed decisions. That improves the functioning of financial markets . The IMF encourage sustained growth and high living standards. That's the best way to reduce members' vulnerability to crises. Provide Technical Assistance and Short-term Loans. The Fund provides loans to help its members tackle balance of payments problems, stabilize their economies, and restore sustainable growth . Since the IMF does lend money, it is often confused with the World Bank . The Bank lends money to developing countries for specific projects that will fight poverty. Unlike the World Bank and other development agencies, the IMF does not finance projects. Traditionally, most IMF borrowers were developing countries . They had limited access to international capital markets due to their economic difficulties. An IMF loan signals that a country's economic policies are on the right track. That reassures investors and acts as a catalyst for attracting funds from other sources. That shifted in 2010. The eurozone crisis prompted the IMF to provide short-term loans to bail out Greece . That was within the IMF's charter since it prevented a global economic crisis. Members Rather than listing all 189 members , it's easier to list the countries that are not.

The seven countries (out of a total of 196 countries) that are not IMF members are: Cuba, East Timor, North Korea, Liechtenstein, Monaco, Taiwan, Vatican City. The IMF has 11 members that are not sovereign countries: Anguilla, Aruba, Barbados, Cabo Verde, Curacao, Hong Kong, Macao, Montserrat, Netherlands Antilles, Sint Maarten, Timor-Leste. Members do not receive equal votes. Instead, they have voting shares based on a quota. The quota is based on their economic size. If they pay their quota, they receive the equivalent in voting shares. The number of voting shares was updated in 2010. That gave emerging market members more voting authority. Here are the Member Quotas and Voting Shares . Role The role of the IMF has increased since the onset of the 2008 global financial crisis . In fact, an IMF surveillance report warned about the economic crisis but was ignored. As a result, the IMF has been called upon more and more to provide global economic surveillance. It's in the best position to do so because its requires members to subject their economic policies to IMF scrutiny.

Member countries also committed to pursuing policies that are conducive to reasonable price stability. They agree to avoid manipulating exchange rates for unfair competitive advantage . History In 2011, the IMF was rocked by a sex scandal involving its Executive Director, Dominique Strauss-Kahn. Polcie arrested him on allegations he sexually assaulted a hotel maid. Although the charges were subsequently dropped, he resigned. Many emerging market members argued that it was time for a Director to come from one of their countries. That reflects the growing economic clout of these countries. They proposed many excellent candidates. They included: Singapore Finance Minister Tharman Shanmugaratnam, former Turkish Economic Minister Kemal Dervis and India's Montek Singh Ahluwalia, a former IMF director. Instead, France replaced Strauss-Kahn with Lagarde, the country's respected Finance Minister. The IMF was created at the Bretton Woods conference that sought to rebuild Europe after World War II. Its goal was to help countries maintain the value of their currencies. The planners wanted to avoid the trade barriers and high-interest rates that helped cause the Great Depression .

Continue Reading IMF cuts UK growth forecasts following Brexit vote | Business | The Guardian Economic growth (GDP) IMF cuts UK growth forecasts following Brexit vote Predictions revised down from April as IMF says EU referendum result has ‘thrown a spanner in the works’ of global recovery Workers in Canary Wharf, London. The UK economy is expected to grow by 1.3% in 2017, the IMF has said. Photograph: Chris Ratcliffe/Bloomberg/Getty Images Economic growth (GDP) IMF cuts UK growth forecasts following Brexit vote Predictions revised down from April as IMF says EU referendum result has ‘thrown a spanner in the works’ of global recovery Tuesday 19 July 2016 19.10 EDT First published on Tuesday 19 July 2016 09.00 EDT Close This article is 6 months old The International Monetary Fund has slashed its forecast for UK growth next year after warning that the decision to leave the EU had damaged the British economy’s short-term prospects and “thrown a spanner in the works” of the global recovery.

The IMF, which voiced strong misgivings about a vote for Brexit before the EU referendum, said it expected the UK economy to grow by 1.3% in 2017, 0.9 percentage points lower than an estimate made in its World Economic Outlook (WEO), in April. While the fund is ruling out a full-blown recession, the analysis by one of the leading global economic bodies underlines the financial challenges facing Theresa May’s government during a period when slower growth will lead to lower tax receipts and a bigger budget deficit. IMF cuts UK and global growth forecasts following Brexit vote - business live Read more On Wednesday in Berlin, the prime minister will hold talks with the German chancellor, Angela Merkel. Both are keen to minimise the economic fallout of Brexit. Germany, with its heavy reliance on exports, is seen by the IMF as the most vulnerable eurozone country following Britain’s vote. May is expected to warn that she needs time to consult with the governments of Scotland, Wales and Northern Ireland, as well as industry sectors, before starting formal negotiations with Brussels.

Tomorrow she goes to France for a meeting with the president, François Hollande, where she will deliver a similar message about the need to resist triggering article 50 until Britain is fully prepared for talks. May and her ministers are keen to talk up the prospects for the economy, with the upbeat response from the Treasury to the IMF report contrasting with the pessimistic tone that had been adopted under George Osborne in the weeks leading up to the EU referendum. A Treasury spokesman said overtures from Australia about a trade deal and the willingness of Softbank to pay £24bn for the technology firm ARM showed the UK could make a success of Brexit. “The decision to leave the EU marks a new phase for the British economy, but our message is this: our country remains open for business. We are the same outward-looking, globally minded, big-thinking country we have always been.” The IMF urged policymakers in the UK and rest of the EU to end the uncertainty.

“Of primary importance is a smooth and predictable transition to a new set of post-exit trading and financial relationships that as much as possible preserves gains from trade between the UK and the EU.” The IMF said it had cut its forecasts for the global economy due to the likely knock-on effect of the vote on other countries, particularly in Europe. Maury Obstfeld, the IMF’s economic counsellor, said: “The first half of 2016 revealed some promising signs – stronger than expected growth in the euro area and Japan, as well as a partial recovery in commodity prices that helped several emerging and developing economies. Pinterest Maury Obstfeld said the IMF had been prepared to upgrade global growth projections for 2016-17 prior to the Brexit vote. Photograph: Getty Images “As of 22 June [the day before the referendum], we were therefore prepared to upgrade our 2016-17 global growth projections slightly. But Brexit has thrown a spanner in the works.” The IMF predicted global growth of 3.1% in 2016 and 3.4% in 2017, both of which were 0.1 points lower than forecast in April.

Britain is still expected to be the second fastest growing economy in the G7 this year – behind the US, despite having its growth forecast for 2016 trimmed by 0.2 percentage points to 1.7%. The IMF believes that next year the UK will have similar growth rates to Germany – the eurozone economy most affected by the Brexit-induced slowdown – and France. Germany’s growth is now estimated at 1.2% in 2017, a fall of 0.4 points. It said: “The vote in the UK in favour of leaving the EU adds significant uncertainty to an already fragile global recovery. The vote has caused significant political change in the UK, generated uncertainty about the nature of its future economic relations with the EU, and could heighten political risks in the union itself. Continuing uncertainty is likely to weigh on consumption and especially investment.” The WEO update said there was a risk that the impact of the UK’s decision to leave could prove worse than expected. “With Brexit still very much unfolding, the extent of economic and political uncertainty has risen, and the likelihood of outcomes more negative than the one in the baseline has increased.” The IMF outlined two alternative scenarios to its forecast, one moderately worse, one significantly.

However, Obstfeld said the resilience of financial markets since 23 June meant that the fund was putting “less weight” on gloomy forecasts. There could still be a second referendum in Britain – if EU leaders listen | Vernon Bogdanor Read more A forecast from the European commission, however, was less sanguine. In its first post-Brexit assessment, the commission said the UK would, at best, grow by 1.1% in 2017, but there was a risk that the economy could contract by 0.3%.

The shadow chancellor, John McDonnell, said of the announcement: “Today’s report from the IMF is another blow for the government and further highlights that they had no plan whatsoever for after a Brexit vote.” Matt Whittaker, chief economist at the Resolution Foundation, said that if the IMF forecast were right, the UK economy would be £21bn smaller than thought: “A £21bn [cut] in the … economy alone would reduce the tax take by £150m a week.” The Adam Smith Institute said the “rebooting” of the economy after Brexit should include the scrapping of corporation tax, abolition of subsidies for farmers, and protection of Britain’s fishing waters.

Question: What in business terms is the IMF?
Answer: International Monetary Fund